Answer:
<u>By reducing their prices compare to the price of their competitors.</u>
Explanation:
Note, a <u>competitive pricing strategy</u> refers to a pricing strategy that involves <em>deliberately </em>finding out the prices in which your competitor sells their product and then tailoring yours to be a little lower than theirs, by so doing customers feel motivated to buy from you instead.
For example, Alibaba can go to its competitor, let's say Amazon. and see how sells an iPhone. Then Alibaba can reduce/set its own price benchmark based on their prices.
Answer:
11.63%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year 0 = $-278,000
Cash flow each year from year 1 to 9 = $52,000 - $5, 000 = $47,000
Cash flow in year 10 = $47,000 + $25,000 = $72,000
IRR = 11.63%
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
Answer:
D. bundling the goods
Explanation:
The company in this case is being discreet to the needs of its consumers.
Inorder to kill two birds with one stone; meaning to meet their consumers value for good X and Y they could make more profits by selling them together as a package.
By doing so both Catherine and Ben would purchase same package, reducing the costs of producing separate products for the company.
Answer: $22.22
Explanation:
We can use the dividend discount model to solve for this.
The formula is,
P = D1 / r - g
Where,
D1 = the next dividend
r = the expected return
g = the growth rate.
We do not have the expected return but we can calculate for it using the old stock price and growth rate. Making it x we have,
28.5 = 0.5 / x - 0.075
28.5 (x - 0.075) = 0.5
x = 0.5 / 28.5 + 0.075
x = 0.09254385964
x = 9.25 %
Now that we have the expected return we can calculate the new stock price with the new growth rate,
P = 0.5 / 9.25% - 7%
P = 22.2222222222
P = $22.22
The new stock price is $22.22